US OCC proposal targets stablecoin reward loopholes via exchanges

A proposal from the U.S. Office of the Comptroller of the Currency (OCC) related to the GENIUS Act could create obstacles for paying stablecoin rewards through exchanges, CoinDesk reported. The agency's Notice of Proposed Rulemaking (NPRM) for the act highlights a high probability that issuers with close ties to exchanges could use them as intermediaries to indirectly pay returns to stablecoin holders. The proposal stresses that the burden of proof to disprove this would fall on the issuer. This challenges a prevailing industry assumption that the GENIUS Act's ban on providing returns applies only to issuers and does not extend to third parties like Coinbase offering their own rewards.